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Don't Let Me Down: Climate Change, Technological Transfers, and International Agreements

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  • Fajardo Baquero, Nicolás

    (Universidad de los Andes)

Abstract

International Environmental Agreements (IEAs) have been proposed as means to encourage green technological transfers between advanced and emerging economies, thereby promoting a global energy transition. This paper presents an endogenous growth model featuring two economies: a North representing a technological leader, and a South being its follower with the possibility of copying the Northern technologies. In addition to the standard technological flows, North and South can engage in cooperative negotiations to ease green technological transfers. I find that technological transfers are able to revert the path dependency in the South. Further, unconditional agreements reducing Northern technologies’ costs can immediately induce a global energy transition if (i) the North follows a clean growth path, and if (ii) Northern technologies are advanced enough. Otherwise, to ensure a global energy transition, the agreement must be coupled with additional policies encouraging clean innovations.

Suggested Citation

  • Fajardo Baquero, Nicolás, 2024. "Don't Let Me Down: Climate Change, Technological Transfers, and International Agreements," Documentos CEDE 21187, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:021187
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    More about this item

    Keywords

    Climate change; Energy transition; International technology transfer; International agreements; Directed technical change;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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